kainexus - jacob stoller, the 3 primary assumptions of successful lean leaders
TRANSCRIPT
Mark GrabanVP of Customer [email protected]
Three Primary Assumptions of Successful Lean Leaders
Jacob StollerAuthor, The Lean CEO
Agenda & Logistics• Presentation (40 minutes)• Q&A (15 minutes)– Use the GoToWebinar
Meeting Panel to submit a question atany time
• Recording link & slides will be sent via email
Three Primary Assumptions of
Successful Lean Leaders
Jacob StollerMarch 15, 2016
© 2015 Jacob Stoller 4
Saved by the dashboard
© 2015 Jacob Stoller 5
Primary Assumption: The safest way to get home is to watch your instruments and do what they say.
© 2015 Jacob Stoller 6
Results ($)
Commands
Sloan’s Command and Control Dashboard
Gemba
Primary Assumption: Financial reports tell the truth about the business.
7
What the financials don’t tell us…
© 2016 Jacob Stoller
Waste
Variation
Employee disengagem
ent“3% of the problems have figures, 97% of the problems do not.” W. Edwards Deming
The Lean CEOsMike Lamach, Ingersoll RandBob Chapman, Barry-WehmillerGeorge Koenigsaecker, Jake BrakeBob Brody, Franciscan Health CareHugo Levente Bara, SupremiaKevin Meyer, Specialty SiliconEd Byczynski, PLZ AeroscienceTom Everill, Northwest Center
Pat Lancaster, LantechArt Byrne, WiremoldPaul Steffes, SteffesSteve Brenneman, ATCKarl Wadensten, VibcoPierluigi Tosato, San BenedettoJohn Toussaint, ThedacareGary Kaplan, Virginia Mason
© 2016 Jacob Stoller 8
Mark Richards, AppvionJim Martin, Goodwill IndustriesJorge Pinto, Caetano BusMary Andringa, VermeerChris McBean, eLeatherEric Ries, The Lean StartupJim Lancaster, LantechBrian Walker, Herman Miller
9
People
Information
Process
© 2016 Jacob Stoller
Three Primary Assumptions for Running the Business
© 2015 Jacob Stoller 10
Bad Profits
© 2015 Jacob Stoller 11
Information
Primary Assumption # 1
Customer value is the primary dashboard for success.
It’s all about radical transparency.
12© 2016 Jacob Stoller
© 2015 Jacob Stoller 13
Leadership
Commands Results True North Problems
Leadership
“This is not for the weak of heart. This is so hard every single doggone day. Lean will surface all of your shortcomings and force you to deal with all the details.” Karl Wadensten, CEO, Vibco
© 2016 Jacob Stoller
© 2015 Jacob Stoller 15
Art Byrne’s Customer Value Dashboard
Customer service %
Inventory turns
ProductivityQuality (defects)
Visual control
(5S)
Letting go of the old way…
© 2015 Jacob Stoller 16
“You can write the report if you like, but I can guarantee you that I won’t read it.”
“Don’t look past the results.”
Art Byrne, Former CEO, Wiremold Mike Lamach, CEO, Ingersoll Rand
Order Processing Engineering Procurement
Value is horizontal.
© 2015 Jacob Stoller 17
Production Shipping
Customer Value
Re-thinking accountability
© 2015 Jacob Stoller 18
“Accountability is not about setting goals and then shaming people who don’t hit the goals. Accountability is about making sure that everybody understands what we’re trying to do.”
Jim Lancaster, CEO, Lantech Inc.
© 2015 Jacob Stoller 19
Process
Primary Assumption # 2Continuous improvement of people and processes towards an ideal state leads to sustainable results.
Continuous improvement as a strategy
Develop people so that people will improve processes in order to drive results.
Capital CostsAdded Headcount
WasteCycle TimesPhysical SpaceDefects
Competitive PositionGross MarginsCash
© 2015 Jacob Stoller 20
A tough sell in the boardroom…
© 2015 Jacob Stoller 21
“..and then I opened the door.”Brian Walker, CEO, Herman Miller
…and on the shop floor.
© 2015 Jacob Stoller 22
Jim Lancaster, CEO, Lantech Inc.
“It’s time for a cookie.”
…and for professionals.
HR Program Designers
Problem Solving Coaches
Accounting Bean Counters
Financial Advisors
IT System Builders
Providers of Real Time Information
23© 2016 Jacob Stoller
Financial Pressures
Unacceptable Outcomes
24© 2016 Jacob Stoller
25
?“We should work on our process, not the outcome of our processes.” – Deming
© 2016 Jacob Stoller
© 2015 Jacob Stoller 26
Primary Assumption # 3
People have a basic human need to do exceptional work, and will do so when barriers are removed. People
27
Bob Chapman, CEO, Barry-Wehmiller
“All anyone asks for is a chance to work with pride.” - Deming
© 2016 Jacob Stoller
The need for exceptional work
© 2015 Jacob Stoller 28
A lasting partnership
© 2015 Jacob Stoller 29
Now, over to you!
© 2015 Jacob Stoller 30
Is customer value seen through gemba your primary dashboard?Are you on a continuous improvement journey that never ends?Are your people empowered to do exceptional work?
Information
People
Process
Our Next Webinar• Michael Lombard– “A management system
supported by KaiNexus”– April 19, 1 pm ET
• KaiNexus.com/webinar
Other Resources
KaiNexus.com/webinars
blog.KaiNexus.com
Thanks!• Web:
– www.kainexus.com– blog.kainexus.com– www.JacobStoller.com
• Past Webinars:– www.kainexus.com/webinars
• Social media:– www.twitter.com/kainexus– www.linkedin.com/company/kainexus– www.facebook.com/kainexus
Mark Graban@MarkGraban
Jacob Stoller@JacobStoller